The biggest change in real estate law in the US concerns commissions paid to real estate agents. A recent settlement means the traditional way commissions are handled could be upended by July 2024.

Here’s the breakdown:

• Sellers no longer have to offer compensation to the buyer’s agent upfront: This could save sellers a significant amount of money, especially on expensive properties.
• Buyers will negotiate commission fees directly with their agent: This means the standard 5-6% commission rate is up for grabs.
• Written agreements are required: Both buyers and agents will need a written contract outlining the services provided and the corresponding fees.

The impact depends on whether you’re buying or selling:

• Buyers: You might get a better deal on commission fees, but you’ll need to be more proactive in finding an agent and negotiating rates.
• Sellers: You could save on commission costs, but you might also have a harder time attracting buyers’ agents to show your property.

It’s still early to say exactly how this will play out, but it’s a big change for the real estate industry. Keep in mind this is a recent settlement and needs court approval before going into effect.

Do’s for Buyers

1. Do get pre-approved for a mortgage. This will give you a clear understanding of how much you can afford to spend on a home, and it will make you a more attractive buyer to sellers.
2. Do be prepared to be flexible with your offer. In a high interest rate market, sellers may be more willing to negotiate on price, closing costs, or other terms.
3. Do consider an adjustable-rate mortgage (ARM). ARMs can offer a lower interest rate in the first few years of the loan, which can help you afford a more expensive home. However, be sure to understand the risks involved before you take out an ARM.
4. Do focus on the long-term. While high interest rates will increase your monthly mortgage payment, they are not likely to stay high forever. If you can afford the home now, you will eventually benefit from lower interest rates when you refinance.
5. Do look for homes that have been on the market for a while. Sellers who are motivated to sell may be more willing to negotiate on price.

Don’ts for Buyers

1. Don’t wait for interest rates to drop. It is impossible to predict when interest rates will go down. If you find a home that you love and can afford, don’t wait in the hope of getting a better interest rate.
2. Don’t stretch your budget too thin. High interest rates will already increase your monthly mortgage payment. Don’t make things even more difficult for yourself by stretching your budget too thin.
3. Don’t waive contingencies. Contingencies are clauses in a purchase agreement that allow you to back out of the deal if certain conditions are not met. Don’t waive contingencies in a hot seller’s market, as this could leave you financially vulnerable.
4. Don’t fall in love with a house before you can afford it. It is easy to get emotionally attached to a house, but don’t let your emotions cloud your judgment. Make sure you can comfortably afford the monthly mortgage payment before you make an offer.
5. Don’t be afraid to walk away. If you don’t feel comfortable with the price or terms of a home, don’t be afraid to walk away. There will be other houses on the market.

Do’s for Sellers

1. Do price your home realistically. In a high interest rate market, buyers may be more price sensitive. Price your home competitively to attract more buyers.
2. Do make your home appealing to buyers. Stage your home to make it look its best and highlight its most attractive features.
3. Do be flexible with your closing date. Some buyers may need more time to close on the sale of their current home. Be willing to work with buyers on the closing date.
4. Do consider offering incentives to buyers. You may be able to sweeten the deal for buyers by offering to pay for some of the closing costs or by providing a home warranty.
5. Do work with a real estate agent. A real estate agent can help you price your home correctly, market it to potential buyers, and negotiate the sale.

Don’ts for Sellers

1. Don’t overprice your home. An overpriced home is unlikely to sell in a high interest rate market.
2. Don’t refuse to negotiate. Be prepared to negotiate on price, closing costs, and other terms.
3. Don’t take too long to respond to offers. In a competitive market, buyers may walk away if you take too long to respond to their offer.
4. Don’t get discouraged if your home doesn’t sell right away. It may take longer to sell your home in a high interest rate market, but there are still buyers out there.
5. Don’t try to sell your home yourself. Selling a home is a complex process. It is best to work with a real estate agent who can help you get the most out of your sale.

• This article is an opinion of the website holder, intended for informational purposes only.

Top 10 Reasons to Use a Real Estate Agent:

Whether you’re buying or selling a home, a good real estate agent can be a valuable asset. Here are ten key reasons why:

Selling:

1. Expertise in Pricing: They know the local market and can help you price your home competitively to get the most money.
2. Marketing Prowess: They have the skills and resources to create professional listings, stage your home, and attract qualified buyers.
3. Negotiation Savvy: They can expertly handle negotiations to get you the best possible price and terms.
4. Network of Connections: They have a network of other professionals like inspectors, stagers, and lenders, saving you time and effort.
5. Paperwork Management: They handle the complex paperwork involved in the transaction, ensuring everything is done correctly.
6. Legal Compliance: They stay up-to-date on legal requirements and ensure your transaction is compliant.
7. Emotional Support: They can guide you through the emotional rollercoaster of selling your home, providing objective advice and support.

Buying:

1. Access to the MLS: They have access to the Multiple Listing Service (MLS), which shows you all the available properties that meet your criteria.
2. Time Savings: They can save you countless hours of searching for properties and scheduling tours.
3. Expert Guidance: They can help you understand the market, identify potential problems, and make informed decisions.

Bonus Reasons:

• Professionalism: They represent you professionally, ensuring a smooth and ethical transaction.
• Peace of Mind: They take on the stress of the process, allowing you to focus on other things.

Remember:

• Not all real estate agents are created equal. Do your research and choose someone who is knowledgeable, experienced, and a good fit for you.
• While there may be upfront costs associated with hiring a real estate agent, their expertise and skills can often save you money in the long run.

Ultimately, the decision of whether or not to use a real estate agent is a personal one. Weigh the pros and cons carefully to determine what is best for you and your situation.

• This article is an opinion of the website holder, intended for informational purposes only.

Battlement Mesa/Parachute

• https://gsar.realtor/02-24-battlement-mesa-parachute/

Rifle

• https://gsar.realtor/02-24-rifle/

Silt

• https://gsar.realtor/02-24-silt/

New Castle

• https://gsar.realtor/02-24-new-castle/

Glenwood Springs

• https://gsar.realtor/02-24-glenwood-springs/

Carbondale

• https://gsar.realtor/02-24-carbondale/

Monthly Indicators Link/PDF Provided By GSAR

• https://gsar.realtor/feb-2024-monthly-indicators/

The above links provided by the Glenwood Association of Realtors.

BATTLEMENT MESA, CO

Website: www.battlementmesacolorado.com

RIFLE, CO

Website: www.rifleco.org

NEW CASTLE, CO

Website: www.newcastlecolorado.org

Glenwood Springs, CO

Website: www.cogs.us

SILT, CO

Website: www.townofsilt.org

CARBONDALE, CO

Website: www.carbondalegov.org

BASALT, CO

Website: www.basalt.net

REDSTONE, CO

Website: www.redstonecolorado.com

SNOWMASS & SNOWMASS VILLAGE, CO

Website: www.gosnowmass.com

ASPEN, CO

Website: www.cityofaspen.com

Enclosed some helpful tips on the buying process and what’s expected:

1. Get Pre-Approved From A Lender: The biggest mistake buyers make is viewing property before pre-approved from a lender. It can be very disappointing to find a property and than not qualify to purchase. The process includes getting tax returns, pay stubs, employer/income verification, credit score and overview of monthly obligations. Many loan programs include FHA, VA, USDA and Conventional. Check with your lender on best option for you.
2. Get Your Finances In Order: If you don’t have Quicken or Quick Books, get a list of all your finances and put together a budget sheet. Include all bills like rent, cell phone, utilities, doctor, car payments, credit card payments, health insurance etc. Than ask yourself, “Will I/we have a down payment”? This will help determine your comfort level on possible mortgage payment including insurance and taxes. Note: Use the mortgage calculator to help with possible monthly payment.
3. Start Shopping For Home Owners Insurance: It a really good idea to start shopping home owners insurance in the beginning stages. Most companies have different guidelines on acceptance, so better to get a head of the game. Premiums can very based on property type like single family, condo or townhomes.
4. Look Into Home Warranty Programs: This is a great way to insure items in the property like, appliances, water heaters, air-conditioners, swamp-coolers and washer/dryers. Most companies have 1-3 year premiums to cover these items.
5. Start Shopping Inspectors: The inspection is something you should ALWAYS do no matter what type of property. This step happens after the property is under contract. Most inspectors cover the home top to bottom checking electrical, plumbing, roof, foundation, appliances etc. The price can run $300-$600 (approx) depending on square footage and property location. This cost is an out of pocket expense and cannot be added to your loan.
6. No Big Purchases After Under Contract: This happens all to often, buyers get under contract and than go buy a car, furniture, computers etc. (DON’T DO THIS)! WAIT UNTIL AFTER YOU CLOSE! Absolutely NO big purchases after under contract! The lender/underwriter are checking your credit throughout the process, any major changes can sabotage your deal and potentially terminate the contract.
7. Work With A Buyers Agent: It’s a real good idea to work with a buyers agent. They/I can work on your behalf as a coach and look out for your best interest (see blog post on agent definitions). They/I can advise you on the entire process from contract to close. Many moving parts including pre-approval, loan application, showings, contract, title, inspection, appraisal, hoa docs and under-writing. Understanding the process makes everything fall into place.
8. Get Familiar With Colorado Real Estate Contracts: It’s a real good idea to get familiar with Colorado Real Estate Contracts. Here are a few that you will see on transactions. 1. Definition of Working Relationships 2. Exclusive Right to Buy 3. Sellers Property Disclosure 4. Square Footage Disclosure 5. Closing Instructions 6. Lead Based Paint Disclosure 7. Water Source Addendum 8. Amend/Extend 9. Inspection Objection. 10. Termination. You can view these documents at the Colorado Division of Real Estate https://dre.colorado.gov/real-estate-broker-contracts-and-forms. Please contact me with any questions or clarification on forms.

Source: Ken Dunham Dunham Real Estate

• This article is an opinion of the website holder, intended for informational purposes only.

Getting ready to sell can be challenging, hopefully this post will help you understand what’s needed to be successful!

1. Get An Inspection: To many deals fall through due to inspection. Have this done prior to listing, it will save time on the deal, bring up possible repairs needed and give you a negotiating tool with the buyer (cost approx $400). You can also avoid possible law-suits down the road.
2. Get A Broker Price Opinion (BPO): It’s very critical to have the property priced right from the beginning. This will avoid price-reductions and possible over-priced value come appraisal time.
3. Get An Appraisal: If you disagree with your agent on estimated value from a BPO, this will give you a second professional opinion on market value (cost approx $500). Great negotiating tool with the buyer down the road (keep in mind most appraisals are good 90 days).
4. Think Like The Buyer: Try and remove all attachment to the property (think like a buyer), ask yourself “What would it take to buy this home!” Be prepared for showings at different times of the day.
5. Curb Appeal: Get the exterior ready! Maintain yard in the summer, remove snow in winter, trim trees, paint if needed, clean gutters, clean windows, remove all debris, wash siding and make sure all light fixtures are functional.
6. Stage The Interior: It’s time to finish the spring cleaning you put off! Remove the clutter from counters, coffee tables, floors, bathrooms, bedrooms, and living space. Brighten up the rooms, fresh paint if needed. Keep the interior clean! Organize the garage, make it available for one or two cars. Great time to have a yard sale!
7. Get An Overview Of The Selling Process: To many times sellers go into the selling process not knowing how it all flows. Many moving parts from contract to close (showings, title, inspection, hoa, appraisal, insurance and under-writing to name a few). Good to be advised and know what to except if something goes wrong!
8. Get Familiar With Colorado Real Estate Contracts: It’s a real good idea to get familiar with Colorado Real Estate Contracts. Here are a few that you will see on transactions. 1. Definition of Working Relationships 2. Exclusive Right to Sell 3. Sellers Property Disclosure 4. Square Footage Disclosure 5. Closing Instructions 6. Lead Based Paint Disclosure 7. Water Source Addendum 8. Amend/Extend 9. Inspection Objection. 10. Termination. You can view these documents at the Colorado Division of Real Estate https://dre.colorado.gov/real-estate-broker-contracts-and-forms. Please contact me with any questions or clarification on forms.

Source: Ken Dunham Dunham Real Estate

• This article is an opinion of the website holder, intended for informational purposes only.

The agency designations as provided by the Colorado Real Estate Commission:

SELLER’S AGENT: A seller’s agent (or listing agent) works solely on behalf of the seller to promote the interests of the seller with the utmost good faith, loyalty and fidelity. The agent negotiates on behalf of and acts as an advocate for the seller. The seller’s agent must disclose to potential buyers all adverse material facts actually known by the seller’s agent about the property. A separate written listing agreement is required which sets forth the duties and obligations of the broker and the seller.

Key Note: Seller Agents work like a coach and can ADVISE!

BUYERS’S AGENT: A buyer’s agent works solely on behalf of the buyer to promote the interests of the buyer with the utmost good faith, loyalty and fidelity. The agent negotiates on behalf of and acts as an advocate for the buyer. The buyer’s agent must disclose to potential sellers all adverse material facts actually known by the buyer’s agent including the buyer’s financial ability to perform the terms of the transaction and, if a residential property, whether the buyer intends to occupy the property. A separate written buyer agency agreement is required which sets forth the duties and obligations of the broker and the buyer.

Key Note: Buyer Agents work like a coach and can ADVISE!

TRANSACTION-BROKER: A transaction-broker assists the buyer or seller or both throughout a real estate transaction by performing terms of any written or oral agreement, fully informing the parties, presenting all offers and assisting the parties with any contracts, including the closing of the transaction without being an agent or advocate for any of the parties. A transaction-broker must use reasonable skill and care in the performance of any oral or written agreement, and must make the same disclosures as agents about all adverse material facts actually known by the transaction-broker concerning a property or a buyer’s financial ability to perform the terms of a transaction and, if a residential property, whether the buyer intends to occupy the property. No written agreement is required.

Key Note: Transaction Brokers work like a referee and can INFORM ONLY!

CUSTOMER: A customer is a party to a real estate transaction with whom the broker has no brokerage relationship because such party has not engaged or employed the broker, either as the party’s agent or as the party’s transaction-broker.

I hope this helps in understanding agent relationships regarding real estate transactions! Please contact me for any questions or clarification.